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Friday, February 14, 2014

Drop Shipping on EBay - How to Release the Temporary Hold on Buyer's Deposited PayPal Funds

Drop Shipping on eBay - How to Release the Temporary Hold on Buyer's Deposited PayPal Funds

Response to Sonya regarding Establishing a Sales History with EBay.to Release the Temporary Hold on Buyer's Funds.

Sonya's question: "I tried it but eBay won't release any money to you. They place it on hold until you mail the item out first."

Sonya, when you are a new seller on eBay, yes.. to protect the buyer, the buyer's funds are directly placed in the seller's PayPal account; however a hold is placed on those funds until the Seller ships the item. (Paypal will hold your money until about 3 days after the buyer receives their product. You will have to pay for it up front at the beginning. Once you get going and build some money in your Paypal account, that (the hold) won't be a problem.).

However, after establishing a sales history or selling relationship with ebay, buyer's funds are released immediately (there is no hold on funds).. It only takes 90 days to establish this sales relationship/history.... Ebay's criteria on this is $250 in sales / 25 Sales / 90-days all three have to be met before that limitation is lifted.

Funds will be available 3 days after it is confirmed that the item was delivered when you use eBay or PayPal to print labels or upload tracking information from UPS, USPS, or FedEx.

If you don't have tracking information (indicating proof that the item was shipped), but you mark the item as shipped and a delivery date can be calculated, your money should be available 7 days after your latest estimated delivery date.

If you don't have tracking information, and you don't mark the item as shipped, nor can a delivery date be calculated (for example, if the item was shipped internationally), the funds should be available 21 days after the buyer pays.

However, again.. new seller status ends once you've met all the following criteria:

*It's been more than 90 days since your first successful sale.
*You've completed more than 25 domestic sales transactions.
*You have more than $250.00 in total sales.

You must treat your drop shipping business like a business -- remember it may take years for a brick and mortar business to realize a profit. However, with drop shipping, it is possible to realize a profit within days!
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